The customized travel market has seen considerable growth due to a variety of factors.
• The bespoke travel industry has seen a significant increase in size over the recent years. Its market value is projected to surge from $117.58 billion in 2024 to $129.87 billion in 2025, with a compound annual growth rate (CAGR) of 10.5%.
Factors that have contributed to this notable growth in the historical period include the emergence of an affluent middle class, internet expansion, the impact of social media, the focus on sustainability, and an increase in safety and health consciousness.
The customized travel market is expected to maintain its strong growth trajectory in upcoming years.
• The projections for the customized travel market size reveal a likely surge over the next few years, reaching an estimated $191.22 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 10.2%.
Driving this growth in the expected period are factors like the widening scope of air travel, the rising demand for personalized experiences, development of tourism infrastructure, the growth in luxury travel, along with evolving lifestyles and demographics. Key trends projected for this period include the utilization of augmented and virtual reality, partnerships with local influencers, customization in group travel, the progression of tourism infrastructure, and the move towards digitalization by travel agencies.
The anticipated surge in millennial travelers is set to fuel the expansion of the customized travel industry. These travelers, born between approximately 1981 and 1996 and belonging to the Millennial generation or Generation Y, are usually in their mid-20s to early 40s. Rather than accumulating material wealth, Millennial travelers place a higher value on experiences. Their travel preferences often include immersive, authentic, adventure-rich experiences, like cultural discovery, outdoor activities, and unique local experiences. Customized travel caters to these millennials by offering bespoke travel experiences that cater to their unique interests and preferences, enhancing their convenience and pleasure and aligning with their values and lifestyle choices. For example, in October 2023, the US-based bank holding company, American Express, published the Amex Trendex Millennial and Gen-Z Holiday Spending & Holiday Spirit report, indicating that 72% of Millennial and Gen-Z respondents would prefer to spend their money on a trip with friends or family during the holidays instead of on gift-giving. As such, the rising wave of millennial travelers is stimulating the growth of the customized travel industry.
The customized travelmarket covered in this report is segmented –
1) By Traveler Type: Luxury Travelers, Adventure Travelers, Cultural Enthusiasts, Family Travelers, Solo Travelers
2) By Trip Duration: Short Breaks (Within 7 Days), Extended Vacations (7-15 Days Or More)
3) By Trip Focus: Special Interest Tours, Wellness Retreats, Educational Travel
Subsegments:
1) By Luxury Travelers: High-End Vacation Packages, Private Yacht And Jet Charters, Exclusive Access Experiences
2) By Adventure Travelers: Extreme Sports, Wildlife Safaris, Trekking And Hiking Expeditions
3) By Cultural Enthusiasts: Historical Tours, Culinary Experiences, Art And Museum Tours
4) By Family Travelers: Family-Friendly Vacation Packages, Educational Tours, Theme Park Packages
5) By Solo Travelers: Solo Travel Packages And Retreats, Group Tours For Solo Travelers, Volunteer And Gap Year Programs
Key players in the tailored travel market are concentrating on creating innovative solutions with AI-enabled platforms for personalized trip organization to improve the travel experiences and simplify the planning procedure. A technology-based tool, an AI-enabled platform for tailored trip organization, employs AI to examine user likes, previous behavior and instant data to construct individualized travel plans. For example, major Indian travel agency, Thomas Cook India, in August 2024, initiated an AI-enabled platform aimed at changing the holiday organizing procedure for customers. In partnership with its affiliate company, SOTC Travel, this innovative tool helps users design personalized holidays in less than ten minutes, marking a substantial decrease from the standard method which usually took between 48 and 72 hours due to the requirement for synchronization with several suppliers for flights, lodging, and activities. Using AI, it offers customized suggestions based on user likes, serving to save time and effort and enabling users to rapidly form bespoke travel agendas.
Major companies operating in the customized travel market are:
• Expedia Group Inc.
• Airbnb Inc.
• Cox and Kings Limited
• TripAdvisor Inc.
• Abercrombie and Kent Group of Companies S.A
• Insight Vacations Inc.
• Sonder Holdings Inc.
• G Adventures Inc.
• Viator Inc.
• Backroads Inc.
• MakeMyTrip Limited
• Travel Leaders Group LLC
• GetYourGuide AG
• Luxury Escapes Travel Pty Ltd.
• TCS World Travel Inc.
• VBT Bicycling Vacations
• Scott Dunn Travel Limited
• Black Tomato Group Inc.
• Railbookers Group
• Klook Travel Technology Limited
• Zicasso Inc.
• Classic Journeys LLC
• Salt and Wind Travel LLC
• Customized Journeys LLC
• Asia Transpacific Journeys Inc.
• Trafalgar Tours International Limited
• Heritage Tours Private Travel LLC
• Rustik Travel Ventures Private Limited
Asia-Pacific was the largest region in the customized travel market in 2024. The regions covered in the customized travel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.